Income Allocation

Income Allocation is the process of allocating the values of posted transactions that were made to the pool general ledger account in the financial system along with gains, losses, interest, and fees added to the batch in the Fund Investment Tool to the appropriate Funds.

In the Fund Investment Tool, all funds are placed into all investment pools and then when the batch calculates, the calculation process removes funds that do not have a balance in the pool GL account.

How to process Income Allocations

1. Go to the Income Allocation tab

2. Click New Batch or choose to import a batch

• Choose New Batch to create a New batch
• Choose New Batch Template which will download a CSV file which can be edited. Note that you can also do this from within a new batch that is created.
• Click Import Batch Spreadsheet to import a batch template. You can choose the batch template that you downloaded and edited as the one for import. Note that you can also do this from within a new batch that is created. 

3. New Batch-Select the Effective Period from the drop-down, the post-date and the pool then click Save. A new batch will appear in the grid.

• The Effective Period is the period in which the activity occurs for the income allocation.
• The Post Date is the date that will be used for the GL post-date to be used to post in the GL in the finance system.
• The Pool is the investment pool for which the income allocations are being done.

4.  Click the ellipsis button next to the batch that was created and select Open to open the batch.

• You can also click Delete to delete it or Calculate to calculate the batch (perform the allocations). Note that you can Calculate from within the batch as well after it is opened. In order to calculate, income types and amounts have to be added to the batch which is explained in item #6 below.

5. Open the batch-Once you open the batch, you will see the description of the batch on the stop, along with the status, date calculated and date that journal entries were created. There is also information on the effective period, post-date and the pool used for the calculations. 

Batch Statuses

• New-a new batch that is not calculated.
• Calculated-batch has been calculated
• Posted-Batch GL entries have been marked as posted

6. Add records to the batch for allocation-You can manually add each income type and amount, or you can import these to the batch.

• Clicking New Record opens a window where you add income types and amount to the batch. These are the amounts that come from your investment statement.

• Clicking Import opens a window where you can generate a template to download to your local computer which you can later upload or you can select Import to import a csv template in which you have entered data to import into the batch.

Once income records are added to the batch, they will appear in the batch details:

7. Calculate the batch If you have not calculated the batch, you can also Calculate from within the batch by clicking the Calculate button which is active for New batches. Clicking the calculate button will display a confirm message. Click Yes to begin the calculations.

You will see this message appear on the bottom right:

Audit Sheet

• Once the batch is calculated, the results are displayed for fund balances and results by allocation type: realized, unrealized, interest & dividends, etc.

Journal Entries

• Click “Send Journal Entries to FE” to create open journal entry in Financial Edge NXT.